Impact of the Big Beautiful Bill on Charitable Food Donations
In the ever-evolving landscape of corporate philanthropy, a significant shift is underway with the implementation of the One Big Beautiful Bill Act (OBBBA), effective from 2026. This legislation sets a new floor for corporate charitable contribution deductions, potentially altering the landscape of charitable giving, including food donations.
Under OBBBA, corporations can only deduct charitable donations exceeding 1% of their taxable income, with a cap at 10% of taxable income. This means that smaller donations below the 1% threshold no longer provide tax benefits, which could discourage smaller or occasional corporate giving, such as food donations from corporations.
Jim Larson, the vice president of development for Food Donation Connect, is a subject of discussion in this article. As nonprofits reliant on corporate food donations or other charitable contributions may experience shifts in the volume or size of gifts as corporations adjust their giving strategies to remain tax efficient, Larson's insights are valuable.
Align Public Strategies, a firm that is closely monitoring the Make America Healthy Again movement, has spoken with Larson regarding these changes. The movement, which includes companies like Coca-Cola, is also focusing on recently approved additives and new developments concerning the ice cream industry.
As the OBBBA affects all corporate charitable contributions uniformly, food donation programs must adapt to the broader corporate giving landscape reshaped by the bill. Other provisions in OBBBA also impact nonprofits indirectly by expanding excise taxes on highly compensated employees and large university endowments.
If you're interested in staying updated on these developments, becoming a Restaurant Business member offers exclusive benefits, including unlimited access to all content. To sign up, simply follow the provided link. As a member, you'll also gain insights into the Make America Healthy Again movement and its impact on various industries, including the food and beverage sector.
This article is part of the Working Lunch, News, and regulation sections of the publication, ensuring you're always informed about the latest trends and changes in the industry.
- As the One Big Beautiful Bill Act (OBBBA) affects all corporate charitable contributions uniformly, corporations might adjust their food donation programs to remain tax efficient, potentially impacting food-and-drink nonprofits that rely on such donations.
- In light of the new regulations set by the One Big Beautiful Bill Act (OBBBA) and the shifts in corporate giving strategies, following the trends and changes in the food and beverage sector through Restaurant Business membership can provide valuable insights, including the impact of the Make America Healthy Again movement.
